Raymond James Financial Reports $3.40 Billion Revenue, Net Income Declines Due to Legal Expenses

Raymond James Financial, Inc. reported a net revenue of $3.40 billion for the third quarter ending June 30, 2025, marking a 5% increase from the same period last year. However, pre-tax income decreased by 13% to $563 million, and net income available to common shareholders fell 11% to $435 million. Earnings per diluted share were $2.12, down 8% from the previous year. The decline in profitability was attributed to a $58 million increase in legal expenses related to a settlement concerning bond underwritings from 2013 to 2015, which significantly impacted the quarter's results.

In comparison to the previous fiscal period, total revenues for the nine months ending June 30, 2025, reached $10.34 billion, a 10% increase year-over-year. The firm’s net income available to common shareholders rose 4% to $1.53 billion, with diluted earnings per share increasing by 7% to $7.35. The growth in revenues was primarily driven by higher asset management fees, reflecting an increase in client assets in fee-based accounts due to market appreciation and net new assets. Investment banking revenues also saw a notable increase, up 16% compared to the prior year.

Operationally, Raymond James Financial experienced growth in its Private Client Group (PCG) segment, with assets under administration reaching $1.57 trillion, a 7% increase from the previous quarter. The firm reported a total of 199,383,976 shares outstanding as of August 4, 2025, with a significant portion of its capital allocated to share repurchases. During the third quarter, the company repurchased 3.3 million shares for $451 million, leaving $749 million available under its repurchase authorization.

The company’s total assets increased to $84.82 billion as of June 30, 2025, up 2% from the previous fiscal year, driven by a $3.8 billion rise in net bank loans. Total liabilities also rose by 2% to $72.55 billion, primarily due to a $1.2 billion increase in bank deposits. The firm maintained a strong capital position, with a tier 1 leverage ratio of 13.1% and a total capital ratio of 24.2%, both well above regulatory requirements.

Looking ahead, Raymond James Financial anticipates continued growth in its asset management and investment banking segments, although it remains cautious about potential market volatility and economic conditions that could impact client activity and investment performance. The firm is committed to maintaining its capital strength and liquidity to support ongoing operations and strategic initiatives.